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USING B-O-T FOR ASIAN INFRASTRUCTURE

In Asia, build-operate-transfer (BOT) infrastructure projects are in their infancy. The most pressing challenge facing these projects is the inadequate long-term debt market. The author of this article discusses why private sector infrastructure development and ownership in Asia will be a success story. The pros of a fully transparent BOT environment--besides promoting open competition and providing the lowest cost--are that the private sector has wider access to capital markets, better management skills, access to technology, and the ability to implement projects faster. The cons for BOT infrastructure projects include monopolistic control by one operator, higher total project costs, and loss of government representation of users. This article offers strategies for success and discusses the role of the Asian Development Bank.